Nestlé's UK subsidiary has signed a 15-year indexed fixed price agreement with Danish offshore wind company Ørsted to buy green power from the Race Bank Offshore Wind Farm, off the coast of Norfolk.
Nestlé UK will buy the output of 31MW of the offshore wind farm's 573MW total capacity, making it Ørsted's largest fixed-price corporate power purchase agreement (PPA) in the UK, Ørsted said Monday.
From May 1, 2020, Nestlé UK will start buying 125GWh of green power per year to cover 50 % of Nestlé UK power consumption.
The agreement, along with Nestlé UK's already existing PPAs, secures that all of Nestlé UK's consumption is covered by PPAs from renewable energy backed by certificates.
For Ørsted, the deal stabilizes revenues for Ørsted's Race Bank Offshore Wind Farm and reduces merchant power price exposure across the portfolio.
In December 2019, Ørsted signed the world's largest PPA for offshore wind with Covestro for 100MW of the output from the Borkum Riffgrund 3 project in Germany. The corporate PPA with Nestlé UK is Ørsted's second in the UK, following the 23MW agreement with Northumbrian Water, signed in February 2019.
Race Bank Offshore Wind Farm is one of the newest operational wind farms in the UK and was commissioned in 2018. It is capable of generating up to 573MW of green electricity from its 91 Siemens Gamesa 6MW wind turbines.
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